Track market-moving stories before they get noisy

Key Takeaways nVent Electric is expanding manufacturing capacity as AI data center and power utility demand accelerate.NVT plans about $130 million in 2026 capital spending to boost production and strengthen its supply chain.NVT launched 11 new products, with new offerings contributing more than 20 points to Q1 2026 sales growth. nVent Electric (NVT - Free Report) is expanding its manufacturing capacity to keep up with growing demand from AI data centers and power utilities. NVT's organic sales grew 34% year over year, while organic orders increased approximately 40% year over year in the first quarter of 2026. Management said data centers were the biggest contributor to growth, helping the company deliver record sales, orders and backlog. nVent Electric believes expanding manufacturing capacity is important to support this demand and maintain growth in the coming years.

A major part of this expansion is the new Blaine, MN, facility, which started production during the first quarter of 2026. Management expects production at the facility to increase through the rest of 2026. Besides Blaine, NVT is expanding manufacturing capacity across several locations for liquid cooling products and engineered building solutions. The company is also increasing capacity for products used in power utility projects as demand for grid infrastructure continues to grow.

nVent Electric is investing heavily to support this demand. NVT plans to spend approximately $130 million on capital expenditures in 2026, indicating a 40% increase from the prior year. The capital spending will be used to expand manufacturing capacity and strengthen the supply chain to support growth in data centers and power utilities and help the company support higher production volumes as demand continues to increase.

Capacity expansion is also helping NVT grow its product portfolio. New product launches, which include products related to liquid cooling and data center applications, contributed more than 20 percentage points to first-quarter sales growth. The company launched 11 new products during the first quarter and expects more launches later this year. The above-mentioned factors show that with higher manufacturing capacity and continued investment in new products, nVent Electric remains well-positioned to meet growing customer demand and support future revenue growth.

How Do Competitors Fare Against NVTnVent Electric competes with companies like Vertiv (VRT - Free Report) and Hubbell (HUBB - Free Report) in the electrical and data center markets.

In April 2026, Vertiv completed the acquisition of Strategic Thermal Labs to expand its engineering capabilities in liquid cooling for AI and high-performance computing (HPC) infrastructure. These capabilities are expected to help Vertiv improve the design, testing and performance of liquid-cooled infrastructure. The acquisition is expected to support Vertiv’s broader strategy of helping customers manage increasingly complex AI and HPC infrastructure by combining power, cooling, controls and lifecycle services into an integrated offering.

Hubbell recently completed the acquisition of NSI Industries, a key manufacturer and supplier of electrical products. The acquisition is expected to strengthen Hubbell’s offerings in areas such as light industrial, data center and network infrastructure applications. Here, electrification trends are expected to support Hubbell's growth across the electrical industry, and the acquisition will help Hubbell expand its portfolio of infrastructure-related products for its electrical and utility customers.

NVT's Price Performance, Valuation & EstimatesShares of nVent Electric have surged 56.9% year to date against the Zacks Electronics - Miscellaneous Components industry’s decline of 2.6%.

nVent Electric YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, nVent Electric trades at a forward price-to-sales ratio of 4.85X, higher than the industry’s average of 4.64X.

NVT Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for nVent Electric’s 2026 and 2027 earnings per share (EPS) implies year-over-year growth of 36.1% and 23.6%, respectively. EPS estimates for both 2026 and 2027 have been revised upward by a penny and 7 cents, respectively, over the past seven days.

Image Source: Zacks Investment Research

nVent Electric currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Demand for Apple Inc's (NASDAQ:AAPL, XETRA:APC) iPhone is strengthening in the United States and Europe but weakening in China, according to a new consumer survey from UBS.

The Swiss bank polled more than 7,500 smartphone users across the United States, United Kingdom, China, Germany and Japan to gauge appetite for a new handset.

The share of American consumers planning to buy an iPhone in the next 12 months rose to around 20%, up from the year before.

Purchase intent also climbed in the United Kingdom and Germany, but slipped in China to roughly 15%, a new low for the second quarter in the survey's history.

UBS said the Chinese reading was a concern, given the country accounts for about a fifth of iPhone sales and may signal wider economic and competitive pressures.

The findings come ahead of an event in September at which Apple is widely expected to launch its first foldable iPhone.

The survey found that appetite for a foldable made by Apple was far higher than for foldable phones in general, a gap UBS reads as a positive sign for demand.

The bank believes a foldable device would give consumers a more compelling reason to upgrade than the artificial intelligence features Apple unveiled at its developer conference in June.

Interest in those Apple Intelligence features has cooled, with the proportion of respondents saying the technology would prompt them to upgrade sooner falling to about 24%.

Nearly a third said the features would have no bearing on their decision to buy a new phone.

Apple retained the strongest customer loyalty of any handset maker, with about 86% of iPhone owners saying their next phone would also be an iPhone.

UBS kept a 'neutral' rating on Apple shares, with a price target of $296 against a closing price of $287.55.

The bank argued the current valuation, at about 31 times expected earnings, already reflects improving demand.

It flagged possible price rises linked to higher memory costs, alongside uncertainty over Apple's product roadmap, as factors capping the shares.

Key Takeaways Uber is expanding its robotaxi push through partnerships with WeRide and Amazon's Zoox.Uber's gross bookings rose 25% to $53.7B in Q1, topping the consensus estimate of $52.9B.Uber faces risks from elevated debt, labor unrest, geopolitical woes and weak stock performance. Uber Technologies (UBER - Free Report) is looking to establish a strong foothold in the lucrative robotaxi space through a partnership-focused approach. The global autonomous vehicle market, valued at $3.36 trillion in 2025, is expected to reach $4.44 trillion in 2026 and $41.75 trillion by 2034, at a compound annual growth rate of 32.3% during 2026-2034, according to Fortune Business Insights. 

In 2020, Uber sold the self-driving division but retained its focus on becoming the ultimate ride-hailing super app. Multiple collaborations highlight Uber’s commitment to integrating cutting-edge AV technologies into its platform. By working with third-party autonomous technology developers, the company sidesteps the heavy research and development costs required to build proprietary self-driving systems.

Uber’s dominant market share in the ride-hailing industry also gives it a unique advantage. With its vast network of drivers and customers, Uber can quickly scale autonomous services once the technology matures. Its app is designed to integrate AVs from multiple partners, giving users a variety of options.

Some Recent AV Collaborations of UberLast month, Uber, in collaboration with WeRide (WRD - Free Report) , a Chinese autonomous vehicle company, announced plans to introduce commercial robotaxi services in the Greater Zurich Region. This move represents their second joint deployment in Europe, coming just weeks after the announcement of a similar initiative in Madrid.

The service is expected to commence later this year in partnership with Switzerland’s Federal Roads Office (“FEDRO”), pending regulatory approvals. At launch, passengers will be able to access the robotaxi service through the Uber app. The launch builds on the partners’ growing track record in autonomous mobility.

Since December 2024, WeRide and Uber have introduced robotaxi services across several Middle Eastern markets, including fully driverless commercial operations in Abu Dhabi and Dubai, as well as public services in Riyadh. These deployments provide an operational foundation for their European expansion. In November 2024, WeRide obtained a driverless permit from FEDRO, allowing autonomous vehicle operations on public roads in Zurich’s Furttal region.

Earlier in the year, Uber entered into a strategic partnership with Amazon’s (AMZN - Free Report) Zoox to deploy its purpose-built robotaxis on the former’s platform. The Amazon unit’s robotaxis differ from many other autonomous vehicles currently in development because they are not modified versions of traditional passenger cars. Instead, the vehicles are purpose-built specifically for ride-hailing services and designed to enhance rider comfort and social interaction. The Amazon unit and Uber indicated that Zoox rides are expected to be available in Los Angeles next year.

Undoubtedly, Uber’s AV ambitions are commendable. Now, the question is whether it is worth buying the stock at current prices. Let us dig deeper to find out.

Further Factors Working in Favor of UBERGross Bookings Growth: Uber continues to benefit from robust growth in gross bookings. The company has been recording solid double-digit growth in gross bookings across both its mobility and delivery businesses.

Despite the crisis in the Middle East, UBER’s Mobility business saw impressive demand, with segmental revenues increasing 5% year over year on a reported basis and 1% on a constant currency basis to $8.2 billion in the first quarter of 2026. Gross bookings from the unit were highly impressive, aiding the first-quarter results. Gross bookings from the Mobility segment in the March quarter increased 20% year over year on a constant-currency basis to $26.4 billion.

Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 23% year over year on a constant-currency basis. Gross bookings from the Delivery segment in the first quarter rose 23% year over year on a constant-currency basis to $26 billion. Total gross bookings jumped 25% to $53.7 billion, ahead of the Zacks Consensus Estimate of $52.9 billion.

The gross bookings forecast for the second quarter of 2026 was very impressive, highlighting the bullishness surrounding the key metric. Despite the geopolitical woes, gross bookings are projected in the range of $56.25-$57.75 billion, highlighting growth of 18% to 22% year over year on a constant-currency basis. The outlook assumes a roughly 2 percentage-point currency tailwind to total reported year-over-year growth.

Continued expansion in gross bookings strengthens Uber’s revenue base, improves operating leverage across its platform and deepens network effects among riders, drivers and merchants. This momentum not only supports revenue growth but also enhances the company’s long-term profitability potential by enabling fixed costs to be distributed more efficiently across a larger transaction base.

Commendable Expansion Efforts: Even though Uber’s primary business is ridesharing, it has diversified into food delivery and freight over time. Diversification is imperative for big companies to reduce risks and Uber has excelled in this area. As part of its expansion efforts, Uber acquired parking startup SpotHero. Following the deal, Uber has introduced a native, in-app parking reservation feature powered by SpotHero, focusing on parking options for commuters as well as at events, venues and airports. Over time, Uber One members may also receive parking-related benefits as part of their membership.

The company is looking to strengthen Uber Eats, its online food ordering and delivery platform and has inked multiple deals recently on that front. Recently, Uber announced the inclusion of multiple new retailers to the Uber Eats marketplace, aimed at expanding its retail selection availability for on-demand delivery. Uber Eats is expanding beyond its patent food delivery business and offering a vast marketplace which covers everyday needs such as skincare, shipping supplies, art materials, sporting goods and pet supplies.

Earnings History: Uber’s earnings have outpaced the Zacks Consensus Estimate in three of the past four quarters, missing the mark on the other occasion. The average beat is 89.6%.

Growth Opportunity for UBER Is Real, But So Are the RisksWhile Uber is benefiting from its AV-related ambitions and gross booking strength, investors should remember that it is facing some headwinds that cannot be ignored.

UBER’s financial metrics indicate that its leverage is elevated and is a massive negative for its shareholders. The long-term debt burden of the company stood at $10.5 billion at the end of the first quarter of 2026, which translates into a long-term debt-to-capitalization of 29.4%, which is reasonable but above the sub-industry’s 9.5%. UBER’s times interest earned ratio at the March quarter-end was 12.1, which is much lower than its industry, indicating a high risk of default.

Shares of Uber have declined in double digits (% wise) over the past six months, underperforming the Zacks Internet-Services industry as well as the S&P 500 index.

6-Month Price ComparisonImage Source: Zacks Investment Research

Apart from the regulatory headwinds, highlighted by labor unrest, the geopolitical woes have the potential to hurt Uber’s operations.

What Do Estimates Suggest for Uber?The Zacks Consensus Estimate for 2026 implies a year-over-year decline of approximately 44% in EPS, while 11% growth is indicated in terms of revenues. Moreover, the earnings estimate revision trend is mixed. While full-year 2026 estimates have moved lower over the past 60 days, projections for the current and next quarter and full-year 2027 have improved.

Image Source: Zacks Investment Research

How to Play UBER Stock Currently?While Uber’s weak stock performance, high debt load, labor unrest and geopolitical woes present near-term challenges, the outlook for the ride-hailing giant remains far from discouraging.

The company’s strategic diversification, AV focus and shareholder-focused initiatives continue to serve as key strengths. With a market capitalization of $146.89 billion, Uber remains well positioned to navigate economic uncertainties. Uber’s ongoing commitment to diversification — through acquisitions, geographic expansion and innovative product offerings — has helped reduce risks and reinforce its competitive standing.

Overall, Uber’s scale, strategic investments and diversification efforts provide a strong foundation for sustained long-term growth. Despite the recent unfavorable price performance, maintaining a position in this Zacks Rank #3 (Hold) stock appears to be a sensible approach for now, while potential investors may prefer to wait for a more attractive entry point.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.  

Key Takeaways MSFT launches new Surface devices in Thailand ahead of July 23 sales after July 1 early-bird registration.MSFT's refreshed lineup uses Snapdragon X2 chips with AI features, faster graphics and longer battery life.MSFT faces Devices sales pressure as it guides More Personal Computing revenues to $11.8-$12.3B for fiscal Q4. Microsoft (MSFT - Free Report) is rolling out its next-generation Surface Pro and Surface Laptop lineup, with Thailand becoming the latest market to receive the devices ahead of official sales on July 23, 2026, following early-bird registration that opened July 1.

The refreshed hardware, powered by Qualcomm's Snapdragon X2 processors, targets professionals and creators seeking on-device AI performance alongside cloud-based workflows. The Surface Laptop's 13.8-inch and 15-inch models offer up to 58% more graphics performance than their predecessors, with battery life reaching up to 20 hours on the smaller model and 19 hours on the larger one. Display sharpness on the 15-inch variant has also improved, with pixel density climbing from 201 to 262 PPI.

The launch arrives as Microsoft's device business continues to face headwinds. In its third-quarter fiscal 2026 results, Windows OEM and Devices revenues declined 2% (down 3% in constant currency), contributing to a 1% overall decline in the More Personal Computing segment, which totaled $13.2 billion. That followed a second-quarter fiscal 2026 period in which Windows OEM and Devices revenues had actually grown 1%, even as total segment revenues fell 3% due to softer Xbox and other consumer categories.

For the fourth quarter of fiscal 2026, Microsoft has guided More Personal Computing revenues to a range of $11.8 billion to $12.3 billion, reflecting continued uncertainty tied to broader PC market conditions.

Against this backdrop, the new Surface rollout represents a modest but deliberate push to reinvigorate premium hardware demand through performance and battery-life upgrades rather than aggressive pricing.

How Apple and Dell Compare in the Premium Device RaceMicrosoft's Surface push places it against Apple (AAPL - Free Report) and Dell Technologies (DELL - Free Report) in the premium computing space. Apple continues to lean on its MacBook lineup and custom silicon to defend margins, while Dell remains focused on enterprise and business-class notebooks alongside its own AI-capable PC offerings. Apple's ecosystem advantage and brand loyalty give it steady premium demand, whereas Dell's scale in commercial channels provides resilience during soft consumer cycles. Compared with Apple and Dell, Microsoft's Surface strategy leans more heavily on hybrid form factors and Copilot+ AI integration, positioning it as a differentiated, if smaller, player among these three hardware competitors.

MSFT’s Share Price Performance, Valuation & EstimatesMSFT shares have lost 18.7% in the past six-month period compared with the Zacks Computer – Software industry’s decline of 21.4%. The Zacks Computer and Technology sector has appreciated 15.8% in the same time frame.

MSFT’s 6-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, MSFT stock appears overvalued, trading at a forward 12-month price/earnings ratio of 22.92X, higher than the industry’s 17.2X. MSFT has a Value Score of C.

MSFT’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MSFT’s fiscal 2026 earnings is pegged at $17.33 per share. The estimate indicates 27.05% year-over-year growth.

Microsoft currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Visa debuted a solution designed to help financial institutions spot cyberthreats and prevent fraud, according to a Thursday (July 2) press release.

The Visa Threat Intelligence Platform (VTIP) employs the same cybersecurity capabilities Visa uses to protect its network, the release said.

“Fraud is widely recognized as a downstream outcome of earlier cyber incidents, often beginning with data compromise, credential theft or system exploitation well before a transaction is initiated,” the release said. “Cyberattacks that expose payment credentials can originate anywhere across the payments ecosystem, from merchants and issuers to acquirers, processors and service providers. In some cases, compromised credentials are trafficked and later misused, which can result in financial loss and operational disruption.”

Visa blocks around 90 million cyberattacks and 11 million phishing emails per month, and VTIP brings the same intelligence behind these defenses to customers in the financial sector, according to the release.

It includes capabilities such as Threat Intelligence, which provides “malware-based indicators of compromise” designed for the financial sector; Vulnerability Intelligence, which focuses on exploits and exposures relevant to each organization; Brand Intelligence, which identifies and prevents impersonation and brand abuse; Digital Identity Intelligence, which helps keep executives and employees from being personally targeted; and Financial Intelligence, which unearths compromised payment credentials from the dark web and “enriches them with VisaNet insights” to provide intelligence for fraud and risk teams, per the release.

“By unifying cyber and fraud intelligence, VTIP helps financial institutions better anticipate upstream threats, prioritize response and reduce the likelihood that cyber incidents escalate into fraud losses,” the release said.

James Mirfin, senior vice president, head of risk and security intelligence solutions at Visa, told PYMNTS in April about how fraud has evolved.

“Fraud has become a business, an economy,” he said, adding that technology has transformed criminal activity from ad hoc schemes to coordinated, professionalized operations.

In addition, advanced technology has given cybercriminals new weapons, even as it helps fraud-prevention teams do their jobs.

Artificial intelligence agents, deepfakes and voice cloning are tools that allow for larger and more convincing scams. Criminals can now automate activities that once needed human labor, allowing attacks to persist and at a wider volume.

Intel (NASDAQ:INTC | INTC Price Prediction) at $127 looks like a wait-and-see. After a year that saw the stock rise from around $22.40 to nearly $140, Wednesday’s 9% single-day drop is the first real crack in the Lip-Bu Tan turnaround narrative.

Intel is trying to become a leading-edge foundry, an AI infrastructure supplier, and a national industrial policy asset all at once. Since Tan took over, the company has strung together six consecutive quarters of revenue above expectations, secured a $5 billion equity investment from NVIDIA (NASDAQ:NVDA), a $2 billion stake from SoftBank, and a U.S. government ownership position that pushed the stock up 278.4% year to date. Then momentum stalled. Since May, the stock has drifted, and this morning it gave back a chunk of gains in one session.

The operating numbers are improving Q1 FY26 non-GAAP EPS came in at $0.29 against a $0.0127 consensus, revenue hit $13.58 billion, up 7.18% year over year, and non-GAAP gross margin expanded to 41.0% from 39.2%. The Data Center and AI segment grew 22% year over year, which matters because that is where NVIDIA’s GPUs need Xeon host CPUs.

Strategic wins keep stacking. Intel Xeon 6 was selected as the host CPU for NVIDIA’s DGX Rubin NVL8 systems, Google signed a multiyear ASIC and Xeon deal, and Intel 18A is in high-volume manufacturing in Arizona. Cantor Fitzgerald raised its price target to $150, and Jim Cramer said Tan has “successfully turned the company around.”

The GAAP story tells a different tale Q1 FY26 posted a $3.73 billion net loss and a $3.14 billion operating loss, weighed down by a $4.07 billion restructuring charge tied largely to Mobileye goodwill impairment. Intel Foundry, the entire point of the leading-edge bet, keeps burning cash, with recent operating losses running $2.51 billion in Q4 2025. Free cash flow was negative $3.87 billion last quarter.

Valuation now assumes everything works. Forward P/E sits at roughly 118x, and Trefis flagged a looming “margin squeeze” from rising input costs and softening PC demand. Reddit sentiment on wallstreetbets has rolled from scores of 77 to 82 in mid-June to 32 to 50 by late June. Composite prediction-market sentiment has fallen 6.37 points over the past week.

Both sides are half right The product cycle is real, DCAI is accelerating, and Intel 18A is shipping. But the foundry has not proven it can attract an anchor external customer, and Intel 14A could be paused or discontinued if that customer never shows. The next real read is Q2 2026 earnings on July 23, 2026, when guidance of $13.8 billion to $14.8 billion in revenue and $0.20 non-GAAP EPS either gets validated or trimmed.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Insiders are net buyers across 47 recent transactions, which is what you see when management thinks the market is jumpy in the short run.

The analyst picture Intel currently trades at $128.21 against a consensus analyst target of $98.50, which implies roughly 23.19% downside. Cantor’s $150 outlier shows how wide the range has become. Coverage spans 48 analysts, and the distribution leans defensive.

Strong Buy: 2 Buy: 10 Hold: 31 Sell: 2 Strong Sell: 3 INTC is up 456% over the past year, which is something the SPY hasn’t achieved in even 10 years.

Why waiting is the right call At $127, Intel is a Hold. The bull case needs one more clean quarter to reprice higher, and the bear case needs one soft foundry update to send it back toward the analyst consensus in the $90s. Neither is knowable before the July 23 earnings report.

Buying today means paying 118 times forward earnings for a company still posting multibillion-dollar GAAP losses and burning cash on capex. Selling today means calling the top on a name where NVIDIA, SoftBank, and the U.S. government are all aligned owners.

The thesis strengthens if Q2 revenue lands at the high end of guidance, DCAI stays above 20% growth, and Tan names an external 14A customer. It weakens if gross margin slips below 39%, foundry losses widen, or 14A gets shelved. Today’s 9% drop is a warning shot. The cost of waiting three weeks is small compared to the cost of guessing wrong on a stock that has already run more than 500%.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

Key Takeaways IBM lagged its industry over three months amid concerns tied to AI-led COBOL modernization.Anthropic's Claude Code could pressure IBM's legacy modernization services and consulting demand.Hybrid cloud, watsonx, HashiCorp and rising estimates may support IBM's long-term growth. International Business Machines Corporation (IBM - Free Report) has jumped 15.4% over the past three months, underperforming the industry’s growth of 127.3%, largely due to macroeconomic challenges and a sudden development in the artificial intelligence (AI) domain that threatens its core legacy businesses. The stock has, however, outperformed peers like Microsoft Corporation (MSFT - Free Report) and Amazon.com, Inc. (AMZN - Free Report) . While Microsoft gained 2.9%, Amazon has rallied 15.2% over this period.

Three-Month IBM Stock Price Performance

Image Source: Zacks Investment Research

What Plagues IBM?IBM's recent weakness largely stemmed from AI startup Anthropic's announcement that its Claude Code tool is capable of modernizing legacy COBOL applications — a programming language that underpins a significant portion of IBM's mainframe ecosystem. The tool promises to automate labor-intensive tasks such as code analysis, documentation, refactoring and security assessment, potentially reducing enterprises' reliance on legacy modernization specialists like IBM.

IBM has long been the dominant player in the mainframe market, generating recurring revenues not only from its hardware business but also from consulting and modernization services for mission-critical COBOL-based applications. The complexity of these legacy environments has historically created a strong competitive moat, as enterprises have been reluctant to replace or rewrite COBOL systems due to the high costs, operational risks and limited availability of skilled developers.

However, AI-powered code modernization tools could begin to narrow this advantage. COBOL continues to power critical workloads across financial institutions, airlines, retailers and government agencies worldwide. If Claude Code significantly lowers the cost, time and complexity associated with understanding, refactoring and migrating legacy applications, enterprises may increasingly pursue modernization initiatives with fewer specialized consulting resources.

Such a shift could weigh on IBM's Consulting business by reducing demand for labor-intensive legacy modernization projects and putting pressure on pricing in an area that has historically generated attractive margins. While the long-term impact remains uncertain, Anthropic's announcement has introduced a potential competitive overhang for one of IBM's established revenue streams, prompting investors to reassess the company's AI-era growth prospects.

Competitive Pressures Add to IBM WoesIBM is facing competition from Amazon Web Services and Microsoft Azure. Increasing pricing pressure is eroding margins, and profitability has trended down over the years, barring occasional spikes. Weaknesses in its traditional business and foreign exchange volatility remain significant concerns.

IBM’s frequent acquisitions have also escalated integration risks. Buyouts have negatively impacted the company’s balance sheet, resulting in high levels of goodwill and net intangible assets. Moreover, a highly leveraged balance sheet has been troubling IBM over time.

Image Source: Zacks Investment Research

The TailwindsDespite the setbacks, IBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company’s growth is expected to be aided by analytics, cloud computing and security in the long run. A combination of a better business mix, improving operating leverage through productivity gains and increased investment in growth opportunities will likely boost profitability.

With a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management, translating into a healthy demand for IBM hybrid cloud solutions.

The buyout of HashiCorp has significantly augmented IBM’s capabilities to assist enterprises in managing complex cloud environments. HashiCorp’s tool sets complement IBM RedHat’s portfolio, bringing additional functionalities for cloud infrastructure management and bolstering its hybrid multi-cloud approach. IBM’s watsonx platform is likely to be the core technology platform for its AI capabilities. watsonx delivers the value of foundational models to the enterprise, enabling them to be more productive.

Estimate Revision TrendIBM is currently witnessing an uptrend in estimate revisions. Earnings estimates for IBM for 2026 have moved up 4.6% to $12.40 over the past year, while the same for 2027 has increased 7.4% to $13.43. The positive estimate revision portrays bullish sentiments about the stock’s growth potential.

Image Source: Zacks Investment Research

End NoteIBM has invested heavily in its own AI capabilities, including watsonx, and could incorporate generative AI into its consulting workflows to improve efficiency rather than lose relevance. A strong emphasis on quantum computing and hybrid cloud is driving value for customers. With improving earnings estimates, the stock is witnessing a positive investor perception.

However, IBM’s growth is dented by high operating costs and stiff competition that reduce its profitability. The company faces a potent threat from Anthropic and needs to fine-tune its business model to remain competitive. With a Zacks Rank #3 (Hold), IBM appears to be treading a middle-of-the-road path, and new investors may be better off trading with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways NextEra's PPAs add contracted revenues and support renewable growth as clean power demand rises.PPAs with Google Cloud and Meta expand demand for wind, solar and battery storage projects.A 33-GW signed project backlog gives NextEra strong earnings visibility and supports new development. NextEra Energy (NEE - Free Report) offers an attractive long-term investment opportunity, driven by its leadership in renewable energy and an expanding portfolio of long-term power purchase agreements (PPAs). Rising demand for reliable, carbon-free electricity from data centers, technology companies and industrial customers supports continued growth, while its regulated utility business provides stable cash flows and a resilient earnings base.

Strategic partnerships are strengthening NextEra's growth outlook. Agreements with Google Cloud and Meta are expanding demand for the company's wind, solar and battery storage projects while adding long-duration contracted revenues. These PPAs enhance earnings visibility, reduce exposure to power price volatility and diversify the customer base through high-quality counterparties.

NextEra’s subsidiary has entered into an MOU with Xcel Energy to accelerate the development of new power generation for large electricity consumers, including data centers. The agreement strengthens their long-standing partnership and supports faster capacity expansion to meet rising power demand.

With disciplined capital investment, a robust renewable development pipeline and a growing backlog of contracted assets, NextEra is well positioned to deliver sustainable earnings growth.

 NextEra's expanding portfolio of PPAs provides the foundation for its renewable growth by securing stable, contracted revenues and supporting new project development. These agreements underpin a 33-gigawatt (“GW”) backlog of signed projects, giving the company strong earnings visibility. Supported by this contracted pipeline, NextEra’s unit Energy Resources plans to significantly expand its renewable generation and storage portfolio, reinforcing long-term earnings growth as demand for clean electricity continues to rise.

Long-Term PPAs Boost Prospects of the UtilitiesLong-term PPAs benefit utilities by providing stable, contracted revenues, improving cash flow visibility and reducing exposure to power price volatility. This supports infrastructure investments, strengthens earnings stability and enables continued expansion of reliable, clean energy generation.

Other than NextEra Energy, Dominion Energy (D - Free Report) and Duke Energy (DUK - Free Report) are well positioned to benefit from long-term PPAs. These agreements provide stable, predictable revenues, support renewable energy investments, reduce market risk and improve earnings visibility, enabling both utilities to meet growing demand for reliable, low-carbon electricity while supporting long-term growth.

NextEra’s Earnings Estimates Moving NorthThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.68%, respectively.

Image Source: Zacks Investment Research

NextEra Price PerformanceShares of NextEra have gained 6.2% in the past six-month period compared with the Zacks Utility - Electric Power industry’s rally of 8.5%.

Price Performance (Six months)
Image Source: Zacks Investment Research

NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.

NextEra’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.21%.

Image Source: Zacks Investment Research

NEE’s RankNextEra currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It has been about a month since the last earnings report for Dollar General (DG - Free Report) . Shares have added about 9.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Dollar General due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Dollar General Beats Q1 Earnings Estimates, Raises FY26 ViewDollar General reported first-quarter fiscal 2026 results, wherein the top line missed the Zacks Consensus Estimate, while the bottom line beat the same. Both net sales and earnings increased year over year, reflecting solid execution of its strategic initiatives, positive customer traffic trends and operating margin expansion, which more than offset the impact of severe winter weather and higher fuel costs.

The company witnessed a rise across all major merchandise categories, supported by same-store sales growth and contributions from new stores. Better-than-expected first-quarter bottom-line performance prompted management to lift its fiscal 2026 earnings view.

More on DG’s Q1 PerformanceDollar General posted quarterly earnings of $2.00 per share, which surpassed the Zacks Consensus Estimate of $1.89. The bottom line increased 12.4% from $1.78 reported in the year-ago quarter.

Net sales of $10,787 million rose 3.4% year over year. Revenues narrowly missed the Zacks Consensus Estimate of $10,822 million. The increase was driven by positive contributions from new stores and growth in same-store sales, partially offset by store closures.

Same-store sales improved 2%, reflecting a 1.4% rise in customer traffic and a 0.5% increase in average transaction amount. The quarter marked positive comparable-sales growth across all major categories, including consumables, seasonal, home products and apparel.

DG’s Key Metrics & Margin InsightsDollar General’s consumables category generated sales of $8,892.5 million, up 3% from the prior-year quarter. Seasonal sales increased 6% to $1,084.3 million, while home products sales rose 3.1% to $523 million. Apparel sales advanced 6.7% to $287.2 million.

Gross margin expanded 65 basis points to 31.6%, benefiting from higher inventory markups, lower shrink and reduced inventory damages, partly offset by increased markdowns and transportation costs.

SG&A expenses, as a percentage of sales, deleveraged 25 basis points to 25.7%. The increase mainly stemmed from higher depreciation and amortization expenses, utilities and property taxes, partly offset by lower incentive compensation.

Dollar General’s operating profit increased 10.8% to $638.5 million. Operating margin expanded 40 basis points to 5.9%.

DG’s Financial SnapshotDollar General ended the quarter with cash and cash equivalents of $1,353.1 million, long-term obligations of $4,563.1 million and total shareholders’ equity of $8,843.3 million.

Net cash provided by operating activities was $716.2 million in the first quarter. Capital expenditures totaled $352 million, including $203 million for improvements, upgrades, remodels and relocations of existing stores, $73 million for new-store facilities, $62 million for distribution and transportation-related projects and $12 million for information systems and technology-related projects.

DG’s Store UpdatesDuring the quarter, Dollar General opened 190 new stores in the United States and five new stores in Mexico. It remodeled 659 stores through Project Renovate and 711 stores through Project Elevate, while relocating six stores.

Management reiterated plans to execute nearly 4,730 real estate projects in fiscal 2026, including about 450 new stores in the United States and 10 new stores in Mexico, nearly 2,000 Project Renovate remodels, approximately 2,250 Project Elevate remodels and about 20 store relocations.

What to Expect From DG in Fiscal 2026?Dollar General raised its fiscal 2026 earnings per share guidance to $7.20-$7.45 from the prior view of $7.10-$7.35. The company continues to expect net sales growth of 3.7-4.2% and same-store sales growth of 2.2-2.7% for fiscal 2026. Capital expenditures are still projected in the $1.4-$1.5 billion range.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

VGM ScoresCurrently, Dollar General has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Dollar General has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerDollar General is part of the Zacks Retail - Discount Stores industry. Over the past month, Target (TGT - Free Report) , a stock from the same industry, has gained 4.4%. The company reported its results for the quarter ended April 2026 more than a month ago.

Target reported revenues of $25.44 billion in the last reported quarter, representing a year-over-year change of +6.7%. EPS of $1.71 for the same period compares with $1.30 a year ago.

For the current quarter, Target is expected to post earnings of $2.21 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.1% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Target. Also, the stock has a VGM Score of A.

Key Takeaways Brazil's FX-neutral GMV growth rose to 38%, while items sold surged 56% in the first quarter.Lower free shipping threshold helped attract new customers and lift purchase frequency in Brazil.Brazil unit shipping costs fell 17% in local currency as same and next-day shipments rose 39%. MercadoLibre, Inc.’s (MELI - Free Report) first-quarter 2026 performance suggests Brazil is becoming one of the important growth engines. While the company continued to deliver healthy momentum across Latin America, Brazil stood out for accelerating growth in both commerce and customer engagement, supported by sustained investments in logistics, pricing and the user experience. The market has evolved beyond being MercadoLibre’s largest contributor by scale and is now driving some of its strongest operating trends.

The clearest evidence came from the marketplace business. Brazil’s FX-neutral gross merchandise volume (GMV) growth accelerated to 38% in the first quarter from 35% in the preceding quarter, while items sold surged 56%, up from 45% in the fourth quarter and 42% in the third quarter of 2025. The company attributed the improvement largely to its lower free-shipping threshold, which continued to attract new customers and encourage higher purchase frequency. Brazil also fueled a record year-over-year increase of 17 million unique active buyers, helping MercadoLibre’s total unique active buyers grow 26%.

The stronger demand is also improving operating efficiency. Same and next-day shipments increased 39% year over year, driven particularly by accelerating volumes in Brazil. At the same time, unit shipping costs in Brazil declined 17% in local currency from the prior year, improving from an 11% reduction in the preceding quarter despite significantly higher shipment volumes. This demonstrates that rising scale is helping offset the costs of MercadoLibre’s free-shipping initiatives.

Brazil is also reinforcing MercadoLibre’s broader ecosystem strategy. The company highlighted continued strength in Mercado Pago, while its credit card business in Brazil has reached a stage where older customer cohorts are maturing as expected, supporting further expansion. Together, these trends suggest Brazil is no longer just MercadoLibre’s biggest market by scale, but one of the clearest drivers behind its accelerating marketplace growth.

What the Latest Metrics Say About MercadoLibreMercadoLibre, which competes with Amazon.com, Inc. (AMZN - Free Report) and Sea Limited (SE - Free Report) , has seen its shares jump 1.6% over the past three months compared with the industry’s 7.3% rise. While shares of Amazon have rallied 15.3%, those of Sea Limited have advanced 24.4% in the aforementioned period.
 

Image Source: Zacks Investment Research

From a valuation standpoint, MercadoLibre's forward 12-month price-to-earnings (P/E) ratio stands at 34.42, higher than the industry’s ratio of 21.07. The stock is trading marginally below its 12-month median level of 34.44.

MercadoLibre is trading at a premium to Amazon (with a forward 12-month P/E ratio of 25.61) and Sea Limited (20.54).

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MercadoLibre’s current financial-year sales and earnings per share implies year-over-year growth of 39.7% and 4%, respectively. For the next fiscal year, the consensus estimate indicates a 26.6% rise in sales and 47% growth in earnings.

The consensus estimate for earnings per share for the current and next fiscal year has fallen by $6.87 and $6.95 to $40.97 and $60.22, respectively, over the past 30 days.

Image Source: Zacks Investment Research

MELI currently carries a Zacks Rank #5 (Strong Sell). The rank reflects near-term earnings pressure despite the company’s strong top-line momentum. Although revenues increased 49% year over year in the first quarter, operating margin fell to 6.9% from 12.9% a year ago, and Net Interest Margin After Losses declined to 17.8% from 22.7% as the credit portfolio expanded. With accelerated investments continuing to weigh on profitability, earnings leverage may remain limited in the near term. The Zacks Consensus Estimate for second-quarter earnings calls for a 15.7% year-over-year decline.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Thermo Fisher To Support Phase 3 DevelopmentThe collaboration brings together Thermo Fisher’s Accelerator Drug Development solutions, which combine manufacturing and clinical research capabilities, to support ARCT-032 through late-stage development and potential commercialization.

Under the agreement, Thermo Fisher will provide Phase 3 manufacturing, clinical research, and related services while Arcturus continues advancing the ARCT-032 program.

The partnership is designed to streamline development by integrating manufacturing, clinical research, and commercial readiness services as the investigational therapy moves toward its next stage.

Commercial Manufacturing Planned If Therapy Wins ApprovalArcturus said it expects to conduct its Phase 3 clinical program through Thermo Fisher’s PPD clinical research business if its ongoing Phase 2 study produces positive results.

The agreement also outlines a potential commercial relationship beyond clinical development. Subject to regulatory approval of ARCT-032, Thermo Fisher will receive exclusive commercial manufacturing rights under a separate commercial agreement.

ARCT-032 is an inhaled mRNA therapeutic candidate for cystic fibrosis, a rare genetic disease.

Arcturus initiated enrollment of a new cohort in March 2026. The open-label Phase 2 clinical study is currently enrolling up to 20 participants.

The study will monitor 10 mg dosing over 12 weeks for safety and evidence of early clinical benefits, including assessment of lung functional improvements, two validated quality‑of‑life outcome measures, and evaluation of any changes in high-resolution computed tomography imaging.

ARCT Stock Price Activity: Arcturus Therapeutics shares were up 12.19% at $7.73 at the time of publication on Thursday, according to Benzinga Pro data.

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Key Takeaways Honeywell Technologies grew Building Automation revenues 11% year over year to $1.88 billion in Q1 2026. HON posted 8% organic sales growth, led by building solutions and building products demand. Building Automation orders rose 9%, driven by projects, services and strong fire products demand. Honeywell Technologies (HON - Free Report) is gaining from continued momentum in its Building Automation segment. Rising demand for its products and solutions, driven by increased building activity, particularly in North America, is fueling the segment’s growth. In the first quarter of 2026, the segment’s revenues rose 11% year over year to $1.88 billion, while organic sales increased 8%.

The segment’s strong performance was driven by sustained momentum across both its building solutions and building products businesses. In the first quarter of 2026, sales from the building solutions business increased 8% year over year, supported by healthy demand for energy-efficient and smart building technologies. Sales from the building products business also rose 8%, reflecting solid demand across residential and commercial construction markets.

Rising order rates and capex investments in data centers and health care projects also bode well for the segment. The Building Automation segment reported strong order growth of 9% in the first quarter, driven by double-digit increases in projects, services and strong demand for fire products.

The Building Automation segment is poised for sustained growth, supported by healthy order trends, solid demand across its key end markets and ongoing investments in data center and healthcare infrastructure.

Segmental Snapshot of HON’s PeersAmong HON’s major peers, 3M Company (MMM - Free Report) is poised to gain from solid momentum in the Safety and Industrial segment, driven by strength in personal safety, industrial adhesives and tapes, abrasives and electrical markets. Stable demand for 3M’s electrical infrastructure products, like medium voltage cable accessories and insulation tapes, augurs well for the segment in the quarters ahead. Revenues from 3M’s Safety and Industrial segment grew 6.8% year over year in the first quarter of 2026.

Honeywell’s another peer, Carlisle Companies Incorporated’s (CSL - Free Report) Carlisle Construction Materials segment, is plagued by lower commercial new construction activity. Volume declines owing to adverse winter weather conditions are also adversely affecting Carlisle’s segment. Revenues from Carlisle’s unit decreased 5.1% year over year in the first quarter of 2026.

HON's Price Performance, Valuation and EstimatesFrom a valuation standpoint, HON is trading at a trailing price-to-earnings ratio of 20.90X. Honeywell carries a Value Score of B.

The Zacks Consensus Estimate for HON’s 2026 earnings has increased a penny over the past 60 days.

Image Source: Zacks Investment Research

Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways General Dynamics is expanding its submarine role through Electric Boat's U.S. Navy work.Electric Boat builds Virginia-class submarines and leads the Columbia-class replacement program.GD benefits from rising undersea warfare demand, naval modernization and a strong backlog. General Dynamics (GD - Free Report) continues to strengthen its position in the global submarine market through its Electric Boat business, one of the leading designers, builders and sustainment providers of nuclear-powered submarines for the U.S. Navy. The business plays a critical role in supporting the Navy's undersea warfare capabilities by developing advanced submarine platforms equipped with enhanced stealth, survivability and mission effectiveness.

Electric Boat is responsible for the design, engineering and construction of the Virginia-class fast-attack submarines and serves as the prime contractor for the Columbia-class ballistic missile submarines, which are expected to replace the aging Ohio-class fleet and form the backbone of the United States' sea-based nuclear deterrent. The company also provides lifecycle support, modernization and engineering services to help ensure the long-term operational readiness of these strategic assets.

Growing geopolitical tensions, increasing naval modernization efforts and rising investments in undersea warfare capabilities are driving strong demand for advanced submarines worldwide. Modern submarines are increasingly being equipped with improved stealth technologies, long-range strike capabilities, advanced sonar systems and unmanned underwater vehicle integration, making them a critical component of modern naval defense strategies.

General Dynamics is well-positioned to benefit from these long-term trends through its deep expertise in submarine design, engineering and production, supported by decades of experience and a strong backlog of naval programs. The company's continued investments in advanced manufacturing, digital engineering and workforce expansion further reinforce its ability to support future submarine demand.

Submarine Stocks to Keep on the RadarOther aerospace and defense companies strengthening their presence in the submarine market are discussed below:

Huntington Ingalls Industries (HII - Free Report) : Through its Newport News Shipbuilding division, HII is a key builder of the U.S. Navy's Virginia-class attack submarines and Columbia-class ballistic missile submarines. The company also provides maintenance, modernization and lifecycle sustainment services that support fleet readiness.

BAE Systems (BAESY - Free Report) : The company is a leading participant in the United Kingdom's submarine programs and is the prime contractor for the Royal Navy's Astute-class nuclear-powered attack submarines. It also contributes to the next-generation Dreadnought-class ballistic missile submarine program.

The Zacks Rundown for GDShares of GD have risen 23.5% in the past year compared with the industry’s 8.3% growth.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.75X compared with its industry’s average of 2.66X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GD’s 2026 and 2027 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

All financial figures are in Canadian dollars unless otherwise noted. This news release refers to certain financial measures and ratios that are not specified, defined or determined in accordance with Generally Accepted Accounting Principles ("GAAP"), including annual run rate adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"). For more information see "Non-GAAP and Other Financial Measures" herein.

CALGARY, Alberta--(BUSINESS WIRE)--Pembina Pipeline Corporation ("Pembina" or the "Company") (TSX: PPL; NYSE: PBA), Morgan Stanley Infrastructure Partners ("MSIP"), and Kineticor Asset Management ("Kineticor"), partners in the Greenlight Electricity Centre Limited Partnership ("Greenlight") (collectively, the "Partners"), today announced a positive final investment decision on the Greenlight Electricity Centre ("GLEC" or the "Project"). GLEC is a 932 megawatt ("MW") gas-fired combined cycle power generation facility to be located in Sturgeon County, within the Alberta Industrial Heartland, to serve a major data centre development (the "Customer").

Rapid growth in artificial intelligence (AI) and cloud computing is driving durable global demand for data centre capacity and Alberta has positioned itself as an attractive jurisdiction for significant investment. Data centre projects require long-term, reliable power, and natural gas-to-power infrastructure has an important role to play in the success of this growing industry. Pembina and Kineticor have been instrumental in enabling development of the Customer's data centre project, a first of its kind in Canada. The Partners are first movers in responding to Alberta's large-scale data centre power needs and are proud to serve as the Customer's long-term, behind-the-meter power provider.

Highlights

Strategic Fit – The Project fits squarely within Pembina's 3C's Strategy to Capture volumes, Connect them to markets, and Catalyze new demand platforms. Extending its track record of value creation from adjacent new businesses, Pembina will benefit directly from its investment in GLEC through a new long-term, stable cash flow stream, and increased business and customer diversification. Additionally, GLEC will Catalyze intra-basin natural gas demand and provide a valuable new egress option to support Canadian natural gas production growth. This growth is expected to benefit Pembina's existing businesses, including natural gas processing and transportation, and natural gas liquids ("NGL") transportation, fractionation and marketing. Long-term Commercial Support – Consistent with Pembina's fee-based midstream model, GLEC will supply electricity to the Customer's data centre under a long-term tolling agreement. The agreement is a tolling arrangement providing revenues in the form of capacity payments and usage-based payments (e.g. fuel and operations and maintenance costs). The anticipated in-service date for the Project is the second half of 2030. Strong Project Economics – Greenlight has obtained a Class III level capital cost estimate of approximately $4 billion, or approximately $2 billion net to Pembina. Approximately 85 percent of this cost has been secured under fixed price agreements. The total Project cost, including $0.6 billion (gross) of interest during construction and other financing costs is expected to be approximately $4.6 billion, or approximately $2.3 billion, net to Pembina. Inclusive of the proceeds of $190 million, net to Pembina, from the sale of land to the Customer, Pembina's total net investment in GLEC will be approximately $2.1 billion. The Project is expected to generate annual run-rate adjusted EBITDA of approximately $310 million, net to Pembina. Growth Platform – GLEC will provide a meaningful contribution to Pembina's growth in 2030 and beyond, including its recently announced 5-7 percent fee-based adjusted EBITDA per share growth target to 2030. Further, Pembina believes this to be a highly scalable new business line. Pembina and its partners are advancing potential additional power-to-data centre projects, including a second phase of the generation Project, as well as other opportunities that could contribute significantly to Pembina's long-term growth. Greenlight Ownership – Greenlight is owned by Pembina (47.5 percent), MSIP (47.5 percent), and Kineticor (5 percent). "This is a tremendously exciting development within Pembina's growing and increasingly diversified business. Together with Kineticor, we have leveraged our advantaged position within the Canadian midstream energy industry and are proud to be the first mover in responding to the power requirements of Alberta-based data centres, all within Pembina's proven midstream model. Dedicated, contracted gas-to-power infrastructure represents a promising new growth platform, through which we are also helping to catalyze new natural gas demand that will provide additional benefits throughout our business." – Scott Burrows, President and Chief Executive Officer, Pembina

"The GLEC represents a significant investment in Alberta's future and a major step forward in establishing a dynamic new industry. Alberta's strong regulatory framework combined with the Province's commitment to the sustainable growth of the data centre industry has created the conditions necessary to advance this project to a positive final investment decision. We remain committed to developing sustainable infrastructure projects across Alberta that deliver affordable and reliable power while supporting long-term economic growth." – Andrew Plaunt, Chief Executive Officer, Kineticor

"Reliable, dispatchable power is the foundation of the AI and cloud economy and Greenlight will deliver it at scale to one of Canada's most important new data centre developments. We are proud to partner with Pembina and Kineticor to begin construction on this landmark project and look forward to expanding the partnership to support future growth in Alberta." – Chris Ortega, Head of the Americas for MSIP

"Alberta natural gas is powering the digital economy forward with this significant investment in electricity generation. This announcement reflects the positive momentum created by the province's memorandum of understanding with the federal government last fall, including the abeyance of the federal government's Clean Electricity Regulations. Investments like this will lead to thousands of jobs, significant economic growth, and hundreds of millions in provincial revenue that can be reinvested to support the services that matter most to Albertans." – Premier Danielle Smith

"Greenlight is a great addition to our Industrial Heartland and we welcome the opportunities it brings with its development. By building new power generation, this project helps create the reliable energy supply needed to enable future industrial growth, attract investment, and strengthen our region's competitiveness without increasing demand on Alberta's electricity grid. We congratulate Greenlight and its partners on moving forward with this project and the role it plays in supporting Alberta's energy future." – Sturgeon County Mayor Alanna Hnatiw

Greenlight Electricity Centre Overview

The Project will consist of a 932 MW combined cycle gas power plant that will supply power on a dedicated basis to the Customer's data centre. The site has the potential to be expanded to a permitted generation capacity of 1,864 MW.

GLEC will utilize two highly efficient SGT6-8000H gas turbines, two SST6-5000 "KN" Steam Turbines coupled with two SGen6-3000W Generators - all from Siemens Energy. Combining gas and steam power production in this configuration increases energy efficiency compared to traditional simple cycle gas turbine generators. Greenlight has ensured delivery timing and cost certainty through a fixed price agreement with Siemens Energy Inc. as well as a long-term service agreement with Siemens Energy Canada Limited.

GLEC will require approximately 150 million cubic feet per day of natural gas. Through recent open seasons on Pembina's Alliance Heartland Expansion Project and the TC Energy Nova Gas Transmission Ltd. systems, and other commercial arrangements, Greenlight has secured sufficient natural gas transportation capacity on a long-term basis to support the Project. Greenlight's natural gas contracting strategy provides redundancy and operational flexibility.

Greenlight has leveraged the combined experience, strong relationships, and contracting expertise of Pembina and Kineticor to support development of the Project. Kineticor led the origination and development of GLEC as part of a fully integrated offering to the Customer and will be responsible for the ongoing development of future expansion opportunities. Pembina will lead the GLEC construction management workstream, leveraging its track record of building infrastructure on time and on budget. Following construction, GLEC will be operated by a third-party contract operator under a long-term services agreement.

The Project has received all major regulatory approvals and has an anticipated in-service date in the second half of 2030.

Commercial Structure

Greenlight and the Customer have entered into a long-term Electrical Energy Supply Agreement ("EESA") under which Greenlight will provide 932 MW of capacity from GLEC to power the Customer's data centre. The EESA is structured as a tolling agreement, supporting a stable stream of capacity payments and usage-based payments (e.g. fuel and operations and maintenance costs).

GLEC's commercial structure aligns with Pembina's fee-based midstream model and will strengthen the Company's business profile by generating additional low-risk cash flows and diversifying its customer base with a new, global, investment grade counterparty.

Project Economics and Funding

Greenlight has entered into fixed price agreements with a consortium of Aecon Group Inc. (TSX: ARE) and Técnicas Reunidas for the engineering, procurement, and construction ("EPC") of GLEC. Together with the fixed price agreement for the purchase of turbines from Siemens, approximately 85 percent of the Project's cost has been de-risked.

Once operational, GLEC is expected to generate annual run-rate adjusted EBITDA of approximately $310 million, net to Pembina. The Project's economics reflect a prudent risk profile, including a long-term commercial agreement, lump sum EPC agreement, and certain cost protections. Separate from GLEC, Pembina may benefit from additional economics related to gas processing and transportation, liquids transportation, and fractionation.

Greenlight has arranged asset-level debt financing for approximately 60 percent of the Project's cost with the remaining 40 percent to be financed through equity contributions. Pembina's net investment of approximately $2.3 billion represents a requirement whereby each of Pembina and MSIP will fund 50 percent of Greenlight's capital. Pembina's contribution will be financed through a combination of project debt and approximately $1 billion of equity contributions. Capital spending in 2026-2027 will be funded with asset-level debt financing, while capital spending in 2028-2030 will be funded with partner equity contributions.

Integration and Expansion Opportunities

Pembina's advantages include its fully integrated wellhead-to-market infrastructure and ability to service customers across the full hydrocarbon value chain. Through GLEC, Pembina is extending its business into an adjacent opportunity arising from its existing footprint, unique capabilities, and strong relationships.

In addition to the direct benefits of Pembina's investment in the Project, GLEC will create valuable new demand for Canadian natural gas, supporting production growth that is expected to benefit Pembina's existing gas processing and gas transportation businesses, including providing support for a regional expansion of the Canadian segment of the Alliance Pipeline.

Alliance Pipeline's binding open season for a new proposed short-haul point-to-point transportation service on the Canadian segment of its system concluded on April 20, 2026. The proposed Alliance Heartland Expansion Project would provide natural gas delivery to a new meter station in Fort Saskatchewan with an anticipated in-service date in the fourth quarter of 2029. Successful proponents have been awarded capacity conditional on the project being sanctioned. The Alliance Heartland Expansion Project continues to progress toward a final investment decision, with ongoing workstreams focused on engineering and regulatory activities, including the filing of applications with the Canada Energy Regulator, which is expected to occur in August 2026.

Further, growing natural gas production supports the associated growth of other products in the Western Canadian Sedimentary Basin, including condensate and NGL, providing additional benefits to Pembina from increased liquids transportation, fractionation and marketing services.

Future opportunities associated with GLEC include the potential to support development of the Alberta Carbon Grid and the transportation and sequestration of emissions from the Project.

GLEC is the first project within a scalable new platform. The Partners are aligned in their desire to build a midstream power business and aspire to repeat the success of GLEC with an expansion of the existing project and/or through the development of additional power plants for other data centre customers. A future expansion is expected to align well with the AESO's Phase 2 Large Load Allocation process and the Province of Alberta's 'bring your own power' data centre strategy.

Greenlight LP Ownership Update

MSIP has acquired from OPTrust, Kineticor's majority shareholder, its 50 percent ownership interest in Greenlight. In addition, upon FID, Kineticor was granted a five percent interest in Greenlight. The resulting ownership of Greenlight is Pembina (47.5 percent), MSIP (47.5 percent), and Kineticor (5 percent).

Greenlight's future capital expenditures will be funded equally between Pembina and MSIP.

"Pembina has enjoyed a strong relationship with OPTrust and Kineticor. Together we have supported development of a new data centre industry in Alberta and positioned Greenlight as a dedicated power provider with a scalable, high growth platform," said Scott Burrows, Pembina's President and CEO. "We look forward to working with MSIP given our complementary strengths and mutual desire to invest capital and generate attractive returns. MSIP is well funded and brings valuable expertise in global infrastructure development that will contribute meaningfully to our shared success."

Advisors

Blake, Cassels & Graydon LLP acted as legal counsel to Greenlight with respect to the commercial agreements and project financing.

Norton Rose LLP acted as counsel to Pembina on the joint venture formation and other commercial agreements.

Osler, Hoskin & Harcourt LLP acted as legal counsel with respect to the EPC agreements.

McCarthy Tetrault LLP acted as legal counsel to lenders.

MUFG Bank, Ltd. acted as financial advisor on the project financing.

Santander acted as exclusive M&A and financing advisor to MSIP on the transaction.

Macquarie Capital acted as exclusive financial advisor to OPTrust and Kineticor.

Kirkland & Ellis and Bennett Jones acted as legal counsel to MSIP.

Forward-Looking Information and Statements

This news release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements"), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation, that are based on Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as "continue", "anticipate", "schedule", "will", "expects", "estimate", "potential", "planned", "future", "outlook", "strategy", "project", "plan", "commit", "maintain", "focus", "ongoing", "believe" and similar expressions suggesting future events or future performance.

In particular, this news release contains forward-looking statements and financial outlooks pertaining to, without limitation, the following: Pembina's strategy and the development and expected timing of the Project and any expansion thereof, and the expected costs, financing, impacts, and benefits thereof and opportunities therefrom; expectations regarding the Alliance Heartland Expansion Project, including the expected timing, impacts and benefits thereof; expectations regarding existing and future commercial agreements, including the long-term tolling agreement, and the anticipated timing, product volumes, and benefits thereof; the successful completion of related third-party projects; statements regarding Pembina's financial and operational performance; expectations regarding the future performance of the Company's assets, including future pipeline, processing, transportation, fractionation and marketing operations; and expectations and targets regarding annual run rate adjusted EBITDA and fee-based adjusted EBITDA per share growth.

These forward-looking statements are based on certain factors and assumptions that Pembina has made in respect thereof as at the date of this news release, including, among other things: oil and gas industry exploration and development activity levels and the geographic region of such activity; the success of Pembina's operations; prevailing commodity prices (including long-term average historical pricing and frac spreads), interest rates, carbon prices, tax rates, exchange rates and inflation rates; the ability of Pembina to maintain current credit ratings; the availability and cost of capital to fund future capital requirements relating to existing assets, projects and the repayment or refinancing of existing debt as it becomes due; future operating costs; geotechnical and integrity costs; that any required commercial agreements can be entered into and performed in the manner and on the terms expected by Pembina; that all required regulatory and environmental approvals can be obtained on acceptable terms and in a timely manner; that there are no supply chain disruptions impacting Greenlight's or Pembina's ability to obtain required equipment, materials or labour for the Project; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant projects; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities relating to lawsuits and environmental incidents; and the availability of coverage under Pembina's insurance policies (including in respect of Pembina's business interruption insurance policy).

Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties including, but not limited to: risks relating to the development, construction, financing and operation of the Project, including contractor and counterparty performance and the ability to complete the Project on the anticipated timeline, budget and economics; the regulatory environment and decisions, including the outcome of regulatory hearings, and Indigenous and landowner consultation requirements; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; reliance on key relationships, joint venture partners and agreements; labour and material shortages; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by contractual counterparties; actions by governmental or regulatory authorities, including changes in laws and treatment, changes in royalty rates, regulatory decisions, changes in regulatory processes or increased environmental regulation; the ability of Pembina to acquire or develop the necessary infrastructure in respect of future development projects; fluctuations in operating results; adverse general economic and market conditions, including potential recessions in Canada, North America and worldwide resulting in changes, or prolonged weaknesses, as applicable, in interest rates, foreign currency exchange rates, inflation, commodity prices, supply/demand trends and overall industry activity levels; new Canadian and/or U.S. trade policies or barriers, including the imposition of new tariffs, duties or other trade restrictions; geopolitical risks; constraints on the, or the unavailability of, adequate supplies, infrastructure or labour; the political environment in North America and elsewhere, including changes in trade relations between Canada and the U.S., and public opinion thereon; the ability to access various sources of debt and equity capital; adverse changes in credit ratings; counterparty credit risk; technology and cyber security risks; natural catastrophes; and certain other risks detailed in Pembina's Annual Information Form and Management's Discussion and Analysis, each dated February 26, 2026 for the year ended December 31, 2025 and from time to time in Pembina's public disclosure documents available at www.sedarplus.ca, www.sec.gov and through Pembina's website at www.pembina.com.

This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected by forward-looking statements contained herein. The forward-looking statements contained in this news release speak only as of the date of this news release. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The forward-looking information and financial outlooks contained in this news release have been approved by management as of the date of this news release. The purpose of these financial outlooks is to assist readers in understanding Pembina's expected and targeted financial results, and this information may not be appropriate for other purposes. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-GAAP and Other Financial Measures

Throughout this news release, Pembina has disclosed certain financial measures and ratios that are not specified, defined or determined in accordance with GAAP and which are not disclosed in Pembina's financial statements. Non-GAAP financial measures either exclude an amount that is included in, or include an amount that is excluded from, the composition of the most directly comparable financial measure specified, defined and determined in accordance with GAAP. These non-GAAP financial measures, together with financial measures specified, defined and determined in accordance with GAAP, are used by management to evaluate the performance and cash flows of Pembina and its businesses and to provide additional useful information respecting Pembina's financial performance and cash flows to investors and analysts.

In this news release, Pembina has disclosed the following non-GAAP financial measures: annual run rate adjusted EBITDA. The non-GAAP financial measures disclosed in this news release do not have any standardized meaning under International Financial Reporting Standards ("IFRS") and may not be comparable to similar financial measures disclosed by other issuers. Such financial measures should not, therefore, be considered in isolation or as a substitute for, or superior to, measures of Pembina's financial performance or cash flows specified, defined or determined in accordance with IFRS, including revenue, earnings and cash flow from operating activities.

Except as otherwise described herein, these non-GAAP financial measures are calculated on a consistent basis from period to period. Specific reconciling items may only be relevant in certain periods.

Adjusted EBITDA from Equity Accounted Investees

In accordance with IFRS, Pembina's joint ventures are accounted for using equity accounting. Under equity accounting, the assets and liabilities of the investment are presented net in a single line item in the Consolidated Statement of Financial Position, "Investments in Equity Accounted Investees". Earnings from investments in equity accounted investees are recognized in a single line item in the Consolidated Statement of Earnings and Comprehensive Income "Share of Profit from Equity Accounted Investees". The adjustments made to earnings, in adjusted EBITDA above, are also made to share of profit from investments in equity accounted investees. Cash contributions and distributions from investments in equity accounted investees represent Pembina's share paid and received in the period to and from the investments in equity accounted investees.

12 Months Ended December 31

Pipelines

Facilities

Marketing &

New Ventures

Total

($ millions)

2025

2024

2025

2024

2025

2024

2025

2024

Share of profit from equity accounted investees

1

42

134

231

74

55

209

328

Adjustments to share of profit (loss) from equity accounted investees:

Net finance costs (income)

1

7

113

175

(16)

(23)

98

159

Income tax expense

—

—

46

73

—

—

46

73

Depreciation and amortization

2

39

254

221

—

7

256

267

Unrealized loss on commodity-related derivative financial instruments

—

—

4

2

—

—

4

2

Gain on disposal of assets

—

—

(2)

—

(62)

—

(64)

—

Impairment expense

—

—

193

—

—

—

193

—

Other non-cash provisions

—

—

2

15

—

—

2

15

Total adjustments to share of profit (loss) from equity accounted investees

3

46

610

486

(78)

(16)

535

516

Adjusted EBITDA from equity accounted investees

4

88

744

717

(4)

39

744

844

Key Takeaways Affirm will offer BNPL across Bed Bath & Beyond, Overstock and buybuy BABY for eligible shoppers.AFRM had about 515,000 active merchants as of March 31, 2026, up 43.8% year over year.AFRM's Q3 FY26 GMV rose 35% and total transactions increased 45% year over year. Affirm Holdings, Inc. (AFRM - Free Report) has entered a new partnership with Bed Bath & Beyond, making its buy now, pay later (BNPL) solution available to eligible shoppers across the retailer's brands, including Bed Bath & Beyond, Overstock and buybuy BABY. Customers can choose to pay for purchases in biweekly or monthly installments with no late or hidden fees, offering greater payment flexibility while shopping for home-related products.

The agreement expands Affirm's presence in the home retail market, where purchases often involve a higher ticket size than everyday discretionary spending. By giving consumers more payment choices at checkout, the company could attract new users and encourage higher transaction activity. The partnership also allows Affirm to reach shoppers during key life events, such as moving into a new home or preparing for a growing family.

The addition further strengthens AFRM's merchant portfolio. As of March 31, 2026, the company’s active merchants were around 515,000, up 43.8% year over year. Expanding relationships with well-known brands enhances the company's reach, increases consumer touchpoints and supports growth in gross merchandise volume (GMV). In the third quarter of fiscal 2026, GMV grew 35% year over year, while total transactions increased 45%, highlighting strong platform engagement.

As demand for flexible payment solutions continues to grow, adding established retailers can support broader platform adoption and higher payment volumes. The Bed Bath & Beyond partnership aligns with Affirm's strategy of expanding its merchant network and should strengthen its long-term growth opportunities in the evolving digital payments landscape.

How Are Competitors Faring?Some of AFRM’s competitors in the BNPL space are PayPal Holdings, Inc. (PYPL - Free Report) and Visa Inc. (V - Free Report) .

PayPal reported 439 million active accounts in the first quarter of 2026, which rose 1% year over year. Its net revenues increased 7% year over year to $8.4 billion in the same quarter. Additionally, PayPal’s total payment volume increased 11% year over year in the first quarter of 2026.

Visa’s processed transactions increased 9% year over year in the second quarter of fiscal 2026. Visa’s payment volume rose 9% year over year in the second quarter of fiscal 2026, along with 17% growth in net revenues.

Affirm’s Price Performance, Valuation & EstimatesOver the past year, AFRM’s shares gained 21.2% against the industry’s fall of 19.5%.

Image Source: Zacks Investment Research

From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 6.66, above the industry average of 3.66.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Affirm’s fiscal 2026 earnings implies 726.7% growth from the year-ago period. The consensus mark for fiscal 2026 revenues indicates 30.6% year-over-year growth.

Image Source: Zacks Investment Research

Affirm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nvidia and Micron Technology have drawn significant investor attention as they power AI infrastructure, but savvy investors may also want to turn some of that attention to Applied Materials (AMAT 7.82%). Applied Materials doesn't make chips, but it designs vital equipment that chipmakers use to create their chips.

In short, Applied Materials is an enabler of chipmakers, but that's not the only thing you need to know when deciding if the stock is a good buying opportunity.

Image source: Getty Images.

A star-studded customer list Applied Materials isn't the only company that produces equipment chipmakers need to create their chips, but it is the largest semiconductor equipment provider in the U.S.

The company's fiscal 2026 second-quarter results highlighted several customer partnerships that suggest accelerated revenue growth is on the way. In its release, Applied Materials mentioned agreements and partnerships with Taiwan Semiconductor Manufacturing, Micron, and SK Hynix. All of these companies have been working together for years, and the parabolic revenue growth they are seeing should translate into higher revenue growth for Applied Materials.

The company delivered 11% year-over-year revenue growth in its fiscal 2026 second quarter, which ended April 26, but it expects at least 30% revenue growth for its semiconductor business in calendar 2026. Semiconductor revenue made up $5.965 billion of the company's $7.91 billion of its second-quarter revenue, which comes to 75% of total revenue.

That segment only had 10.4% year-over-year revenue growth in the quarter, so guidance for 30% revenue growth throughout calendar 2026 implies substantial acceleration in upcoming quarters.

Today's Change

(

-7.82

%) $

-50.89

Current Price

$

600.02

Applied Materials has an elevated valuation Not every investor is waiting around for Applied Materials to deliver at least 30% revenue growth in calendar 2026. The stock has more than doubled year to date, resulting in a P/E ratio that soared from the mid-teens just a year ago to over 50 right now.

While the current valuation leaves a lower margin of safety, Applied Materials can fit nicely into its new valuation if it delivers on guidance. The company's guidance for 30% revenue growth for its semiconductor segment in calendar 2026 does not mean it will maintain a 30% revenue growth rate for the rest of the year.

Applied Materials has to achieve 40% to 50% revenue growth in future quarters to offset an 11% year-over-year revenue jump in its Q2. The company has maintained high net profit margins, reaching 35.5% in the most recent quarter, so net income should meaningfully advance in calendar 2026.

Applied Materials' fundamentals are set to strengthen thanks to a multiyear AI supercycle. That can address the valuation and make it more attractive in the near future. Investors who buy now, anticipating what the company can become, may be making a wise decision.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Applied Materials, Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Key Takeaways Northrop Grumman is expanding missile capabilities through advanced tactical and defense technologies.NOC's portfolio includes precision-strike weapons, sensors, command-and-control and defense systems.SiAW and AARGM-ER target contested environments and advanced enemy air defense systems. Northrop Grumman (NOC - Free Report) continues to strengthen its position in the missile market through the development of advanced missile systems and precision-strike technologies for the U.S. military and allied nations. The company offers a broad portfolio of missile and missile defense solutions designed to address evolving battlefield requirements and counter increasingly sophisticated threats.

NOC continues to expand its missile capabilities through the development of advanced tactical missiles, missile defense technologies and next-generation munitions. Its portfolio includes precision-strike weapons, advanced sensors, command-and-control systems and integrated air and missile defense solutions that support a wide range of military missions. These capabilities enable the company to help customers detect, track and defeat emerging threats while improving operational effectiveness.

Among its advanced missile programs are the Stand-in Attack Weapon (SiAW) and the Advanced Anti-Radiation Guided Missile Extended Range (AARGM-ER). The SiAW is designed to strike heavily defended and time-sensitive targets in contested environments and features an open-architecture design that allows for rapid upgrades as threats evolve. Meanwhile, the AARGM-ER is a supersonic, air-launched tactical missile developed to destroy advanced enemy air defense systems through improved propulsion, extended range and an enhanced warhead.

With governments around the world continuing to invest in advanced missile systems and strengthen their defense capabilities, demand for modern missile technologies is expected to remain healthy. Northrop Grumman's broad portfolio of missile solutions, combined with its expertise in advanced electronics, sensors and integrated defense systems, positions it well to benefit from long-term growth opportunities in the global missile market.

Other Companies Expanding Their Missile CapabilitiesOther aerospace and defense companies expanding their missile capabilities are discussed below:

RTX Corporation (RTX - Free Report) : The company develops advanced missile systems such as the Patriot air and missile defense system and the SM-6 missile, which continue to witness strong global demand. RTX also provides advanced sensors, interceptors and command-and-control technologies that strengthen layered missile defense capabilities.

Lockheed Martin (LMT - Free Report) : Through its broad missile portfolio, the company manufactures systems such as the Patriot Advanced Capability-3 (PAC-3), Terminal High Altitude Area Defense (THAAD), Joint Air-to-Surface Standoff Missile (JASSM), Multiple Launch Rocket System (MLRS) and Javelin tactical missile, supporting U.S. and allied defense modernization efforts.

The Zacks Rundown for NOCShares of NOC have surged 3.1% in the past year compared with the industry’s 7.1% growth.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.63X compared with its industry’s average of 2.66X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NOC’s 2026 and 2027 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

Key Takeaways Dycom's backlog hit a record $11.9B in fiscal Q1 2027, up 46.5% year over year.DY raised fiscal 2027 revenue guidance to $7.38B-$7.65B on sustained customer demand and backlog strength.DY's backlog growth spans fiber, building systems and digital infrastructure with broader customer diversity. Dycom Industries, Inc. (DY - Free Report) is strengthening long-term revenue visibility through a growing backlog supported by broad-based demand across communications and digital infrastructure markets. A larger and more diversified project pipeline, combined with longer customer commitments, provides greater confidence in future revenue generation while reinforcing the company's multiyear growth outlook.

In the first quarter of fiscal 2027, total backlog reached a record $11.9 billion, up 46.5% year over year and 25% sequentially, representing a book-to-bill ratio of 2.2x. The backlog became more diversified across customers, demand drivers and geographies, while some customers extended contract durations to secure skilled labor for future projects. These factors improve planning visibility and support efficient resource allocation. The company also raised its fiscal 2027 revenue guidance to $7.38-$7.65 billion, up from the prior guided range of $6.85-$7.15 billion, indicating confidence in sustained customer demand.

The diversified sources of backlog growth further strengthen Dycom's long-term revenue outlook. Communications benefited from expanding fiber-to-the-home deployments, additional geographic expansion and growing long-haul fiber activity. The Building Systems business also gained momentum following the successful integration of Power Solutions, while the pending acquisition of National Technology Integrators is expected to expand the company's data center capabilities and create additional cross-selling opportunities.

Looking ahead, rising investment in fiber networks, data centers and broadband infrastructure is likely to support additional backlog growth. Combined with a diversified project portfolio, longer-duration customer commitments and an expanding digital infrastructure platform, Dycom appears well positioned to convert its growing backlog into sustainable revenue growth over the coming years.

How Dycom Compares With Key Infrastructure RivalsDycom competes closely with MasTec, Inc. (MTZ - Free Report) and EMCOR Group, Inc. (EME - Free Report) in the infrastructure construction market.

EMCOR operates across electrical and mechanical construction, building services and industrial services markets, with strong exposure to mission-critical facilities and data center construction. The company benefits from broad geographic coverage, execution capabilities and a diversified project portfolio across multiple end markets. However, EMCOR’s business remains tied to the pace of large construction projects and customer capital spending across infrastructure sectors.

Meanwhile, MasTec maintains a diversified infrastructure platform spanning communications, power delivery, clean energy, industrial construction and pipeline markets. The company's broad service offering positions it to benefit from long-term investment trends such as AI-driven data centers, grid modernization and energy infrastructure expansion. At the same time, MasTec remains exposed to variability based on project timing and execution across multiple infrastructure segments.

Dycom's specialization in communications infrastructure and fiber network deployment provides a focused advantage as broadband expansion, fiber connectivity and AI-driven data center interconnection projects continue to grow. Long-standing customer relationships and expertise in wireline network construction support its market position. However, the company's performance remains closely linked to telecommunications investment cycles and customer network spending decisions.

DY Stock’s Price Performance & Valuation TrendShares of this North America-based specialty contracting firm have gained 39.2% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the broader Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

DY stock is currently trading at a premium compared with the industry, with a forward 12-month price-to-earnings (P/E) ratio of 26.36, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of DYDycom’s earnings estimates for fiscal 2027 and 2028 have moved upward in the past 30 days to $16.35 and $19.95 per share, respectively. The estimates for fiscal 2027 and 2028 imply year-over-year growth of 36.6% and 22%, respectively.

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Dycom currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AeroVironment Inc. AVAV shares rose 4% in premarket trading on Thursday after the US Department of War awarded the defense contractor a $500 million contract for counter-unmanned aerial systems.

The Simi Valley, California-based company received a firm-fixed-price contract to procure commercial counter-unmanned aerial systems and counter small-unmanned aerial systems capabilities.

According to the Department of War, work locations and funding will be determined with each order placed under the agreement, which is expected to run through June 29, 2029.

Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity for the agreement, which carries contract number W912CH-26-D-A073.

The contract announcement added to investor optimism following AeroVironment's strong fiscal fourth-quarter earnings report earlier this week.

The company specializes in unmanned aircraft systems and tactical missile systems for military and commercial applications.

AeroVironment reported record fiscal fourth-quarter revenue of $641.6 million for the period ended April 30, 2026, up 133% from a year earlier.

The sharp increase was aided by the acquisitions of defense technology companies BlueHalo and Empirical Systems Aerospace. Excluding those acquisitions, organic revenue growth was approximately 31%.

Profitability also improved significantly.

Non-GAAP adjusted EBITDA more than doubled to $140.1 million, lifting the adjusted EBITDA margin to 22%. Adjusted earnings per share increased to $1.84 from $1.61 in the prior-year quarter.

The company's funded backlog reached $1.2 billion at the end of fiscal 2026, compared with $726.6 million a year earlier, while full-year bookings totaled $2.7 billion against approximately $2 billion in revenue.

That resulted in a book-to-bill ratio of 1.4, indicating orders continued to outpace shipments and providing greater visibility into future demand.

While AeroVironment is widely known for its Switchblade loitering munitions, management believes its counter-drone business could become an increasingly important contributor over the coming years.

Counter-unmanned aircraft systems generated about $200 million in revenue during fiscal 2026.

The company is expanding the business through a three-layered approach that includes the Titan family of radio-frequency jamming systems, the LOCUST directed-energy weapon under development, and the Freedom Eagle-1 kinetic interceptor designed to destroy incoming drones.

Discussing the long-term opportunity, CEO Wahid Nawabi said, "It will not surprise me in the next 3-5 years that our directed energy and our counter-UAS business would be equally as large, if not 2-3 times bigger."

Management also cited "unprecedented" demand across its markets and projected fiscal 2027 revenue of $2.1 billion to $2.2 billion, with the midpoint implying roughly 10% growth.

Despite the recent gains, AeroVironment shares trade at about 54 times the midpoint of management's fiscal 2027 adjusted earnings guidance and remain well below their 52-week high of nearly $420.

Jim Cramer urged investors to remain cautious because of negative sentiment surrounding the stock.

“The short sellers in this thing are so powerful,” he said on CNBC, adding they're fully convinced that AeroVironment “paid too much” for BlueHalo.

According to Cramer, AVAV is trading near a bottom and a strong fourth-quarter report could help keep it in the “green”, but he warned of possible short-term volatility due to what he described as "a coordinated assault by institutional bears."

He also said investors should be cautious because the “lies that have been told about this company and shading of the truth” are extraordinary.

Wall Street, however, continues to rate AeroVironment a "Strong Buy," with a mean price target of about $295 over the next 12 months.

Key Takeaways Onto Innovation is gaining from AI demand, advanced packaging and HBM manufacturing growth.ONTO sees growth from Dragonfly G5, Atlas G6 and expanding advanced packaging applications.ONTO trades above industry valuation, while estimates for 2026 and 2027 have moved higher. Shares of Onto Innovation, Inc. (ONTO - Free Report) have surged 25.5% over the past month compared with the Zacks Nanotechnology industry’s growth of 24.7%. The company has outpaced the Zacks Computer and Technology sector and the S&P 500 composite’s plunge of 4.3% and 0.9%, respectively. The rally reflects growing investor optimism surrounding the company's exposure to AI, advanced semiconductor packaging and HBM manufacturing. As chipmakers continue to invest aggressively to meet demand for AI infrastructure, Onto Innovation has emerged as one of the beneficiaries of this trend.

Image Source: Zacks Investment Research

ONTO’s key competitors include KLA Corporation (KLAC - Free Report) , Camtek Ltd (CAMT - Free Report) and Nova Ltd. (NVMI - Free Report) . KLAC has grown 25.3%, while CAMT and NVMI plummeted 15.2% and 5.2%, respectively, in the same time frame.  

After such a sharp move, however, investors naturally face an important question: Is it still worth buying ONTO, or has the rally already priced in most of the good news? Let's examine what's driving the stock higher, the company's long-term prospects and whether investors should buy, hold, or wait for a better entry point.

Advanced Packaging Becomes a Major Growth Driver for ONTOThe company sees high growth potential in advanced packaging, silicon photonics, panel-level packaging and related applications. Advanced packaging is expected to grow more than 50% in 2026, driven by the rapid expansion of AI and next-generation semiconductor technologies. Silicon photonics is already moving into volume production as AI servers require faster data transfer and lower power consumption. The panel-level packaging market, currently valued at roughly $200 million, also has significant room for expansion as the industry increasingly adopts panel-based manufacturing and chiplet architectures.

At the same time, demand for smaller and denser interconnects, with bump sizes below 6 microns, continues to rise, creating additional opportunities across the advanced packaging ecosystem. Despite ongoing supply chain headwinds, lead times remain well-managed, and companies have reported no major impact on customer commitments or delivery schedules. Onto Innovation sees a strong growth runway in the 2.5D logic market, supported by deeper engagement with a key customer and an expanding set of applications. Previous system limitations have been removed, enabling the company to pursue more than 15 applications that were previously out of reach, expanding its serviceable addressable market.

Management also indicated that its current outlook may be conservative, leaving room for upside in the second half of the year, with the momentum expected to extend into 2027 as customer adoption broadens. At the same time, the company is benefiting from a more diversified customer base, as advanced packaging customers increasingly outsource high-value process steps. By strengthening its position with outsourced manufacturing partners, ONTO is reducing customer concentration, expanding its market reach and building a more diversified and sustainable long-term revenue base.

ONTO continues strengthening its competitive edge through multiple product wins and market expansion efforts. Its Dragonfly G5 inspection system has been qualified by a top 2.5D logic customer, with shipments already ahead of schedule and demand expected to grow through 2026. Further, the Atlas G6 platform is gaining momentum in advanced-node manufacturing, with management predicting 25% growth in 2026. A new through-silicon via metrology application is set for initial shipments in the second half of 2026.

Image Source: Zacks Investment Research

For 2027, it anticipates outpacing wafer fab equipment industry growth through ongoing market share gains, driven by Dragonfly G5's nearly $1 billion addressable market, the continued expansion of Atlas G6 in gate-all-around applications, new surface charge metrology and panel-level packaging offerings and a strong pipeline of new applications for a wider customer base.

Risks Faced By ONTODespite its strong long-term prospects, Onto Innovation faces several risks. The semiconductor equipment industry remains highly cyclical, making customer spending vulnerable to shifts in inventory levels and end-market demand. The company also relies on a handful of large semiconductor customers, leaving results exposed to delays in capital spending. In addition, export controls and geopolitical tensions continue to create uncertainty for semiconductor equipment suppliers, potentially limiting future growth opportunities. Intense competition from larger industry players further pressures Onto Innovation to continue heavy R&D investments to maintain its technological edge.

Favorable Estimate Revision Trend for ONTOEarnings estimates for ONTO have moved up for both 2026 and 2027 over the past 60 days.

Image Source: Zacks Investment Research

Is ONTO’s Valuation Becoming Stretched?Valuation is the primary concern after ONTO's 26% rally, with semiconductor equipment stocks typically trading at rich multiples during upcycles. In terms of forward price/earnings, ONTO’s shares are trading at 41X, higher than the industry’s 8.05X.

Image Source: Zacks Investment Research

KLAC, CAMT and NVMI are trading at multiples of 71.69X, 43.13X and 47.12X, respectively.

Should Investors Buy, Hold or Fold ONTO Stock?Onto Innovation has become one of the more compelling semiconductor equipment companies benefiting from the AI boom. The recent rally reflects investors' growing confidence in these opportunities, but it also raises valuation expectations. While the stock may experience near-term volatility after such a sharp advance, the company's long-term fundamentals remain solid.

For existing shareholders, the recent surge reinforces the strength of Onto Innovation's business model and supports a hold stance, particularly for those with a multi-year investment horizon. For prospective investors, the company remains attractive, but initiating a position gradually or waiting for a pullback could offer a more balanced entry point.

ONTO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Key Takeaways Sterling's Transportation Solutions revenues rose 10% and adjusted operating income increased 26% in Q1 2026.STRL's Transportation Solutions backlog reached $1.04 billion, up 20% year over year.Sterling is shifting resources to higher-return E-Infrastructure projects to improve efficiency. Sterling Infrastructure, Inc. (STRL - Free Report) has built a diversified business across multiple infrastructure markets, with Transportation Solutions remaining an important contributor to its long-term strategy. While the segment may not attract as much attention as the company's faster-growing businesses, it plays a meaningful role by generating stable earnings, supporting efficient resource allocation and strengthening the overall operating model.

In the first quarter of 2026, Transportation Solutions generated revenue growth of 10%, while adjusted operating income increased 26% due to strong execution and a favorable mix of higher-margin projects. Segment backlog reached $1.04 billion, up 20% year over year, providing healthy revenue visibility. Sterling expects Transportation Solutions to deliver low to mid-single-digit revenue growth in 2026, although growth is likely to moderate following an unusually strong first quarter that benefited from favorable weather and earlier-than-expected project starts.

Another factor enhancing the segment's value is its evolving role within Sterling's operating model. Sterling is reducing exposure to lower-margin highway work in Texas while redeploying equipment and operational resources to higher-return projects. This approach improves asset utilization, supports stronger capital efficiency and allows the segment to play a broader role in Sterling's long-term growth strategy. Transportation Solutions also serves as a reliable cash-generating business, providing financial flexibility to support investment across other growth initiatives.

Transportation Solutions may not be the primary growth engine, but the ability to generate consistent cash flow, improve resource utilization and support expansion across the broader business makes it an increasingly valuable part of Sterling's long-term growth strategy.

How Sterling Compares With Key Infrastructure RivalsSterling operates in attractive infrastructure markets supported by data center expansion and broader investment in digital and industrial infrastructure. Two notable competitors are MasTec, Inc. (MTZ - Free Report) and EMCOR Group, Inc. (EME - Free Report) , both of which have established positions across large-scale engineering and construction projects.

MasTec has built a diversified infrastructure platform spanning communications, power delivery, clean energy, pipeline and civil construction. The company is benefiting from rising investments in AI-driven data centers, grid modernization and connectivity infrastructure, while also expanding its turnkey capabilities for mission-critical projects. These strengths position MasTec as a significant competitor in infrastructure projects linked to data center growth.

EMCOR is another major competitor with strong capabilities in electrical and mechanical construction and building services. The company continues to see robust demand from data centers, manufacturing, healthcare, institutional and water infrastructure markets, supported by expertise in complex mission-critical projects and long-standing customer relationships. While EMCOR serves a broader mix of end markets, the growing exposure to data center construction places it in direct competition for large infrastructure opportunities.

STRL Stock’s Price Performance & Valuation TrendShares of this Texas-based infrastructure services provider have gained 153.6% year to date, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 Index.

STRL’s Price Performance (YTD)
Image Source: Zacks Investment Research

STRL stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 34.54, as shown in the chart below.

STRL's P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

Earnings Estimate Revision of STRLSTRL’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $19.12 and $25.83 per share, respectively, as shown below. The revised estimates for 2026 and 2027 imply year-over-year growth of 75.7% and 35.1%, respectively.

Image Source: Zacks Investment Research

Sterling currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Cohu's outlook rests on turning AI, HPC and HBM opportunities into durable revenue growth.Cohu sees a $750M HPC pipeline and expects $80M-$100M in HPC-related revenues in 2026.Cohu expects HBM revenue to rise about 80% to roughly $20M in 2026, supported by repeat orders. Cohu, Inc. (COHU - Free Report) is drawing more attention as AI infrastructure spending raises the need for advanced semiconductor test, inspection and thermal-control equipment.

The investment case now rests on whether Cohu can convert its AI, high-performance computing and HBM opportunities into durable revenue growth while repairing profitability.

How Cohu Makes Money TodayCohu supplies semiconductor test and inspection equipment, software analytics, interface products, spares and services that help chipmakers improve yield and productivity.

Its business is split between systems revenue and recurring revenue. In 2025, semiconductor test and inspection systems accounted for 40% of net sales, while recurring revenues made up 60%.

That recurring base includes interface products, software, spares and services. It gives Cohu a steadier revenue stream than equipment orders alone, which remain tied to customer capital-spending cycles.

Cohu serves IDMs, OSATs and fabless chip companies across automotive, industrial, mobile, consumer, HPC and AI applications.

COHU Finds a New AI Growth LaneThe biggest change in Cohu’s story is its growing exposure to AI processors and high-performance computing. Management now sees an HPC opportunity pipeline of about $750 million, including roughly $650 million in test handlers and $100 million in HBM inspection.

The opportunity is tied to higher chip complexity. AI accelerators, GPUs and xPUs generate intense heat, making precise thermal control during testing more important for yield, performance validation and reliability.

Cohu expects $80 million to $100 million in HPC-related revenues in 2026. The Eclipse handler platform, supported by active thermal control, is central to that push.

Teradyne (TER - Free Report) is a relevant peer because it designs and manufactures automated test equipment for semiconductor and electronics products. KLA Corporation (KLAC - Free Report) also frames the competitive backdrop, given its role in process control, inspection, metrology and yield-management systems.

Cohu Sees HBM Demand Add Another CatalystHBM inspection gives Cohu another AI-linked growth channel. The company’s Neon inspection platform supports demand tied to AI workloads and advanced memory requirements.

Cohu expects HBM-related revenue to rise about 80% year over year to roughly $20 million in 2026. Repeat orders from major customers support the view that the platform is gaining traction.

The company is also investing for next-generation HBM requirements. That matters because HBM3, HBM4 and future memory architectures require tighter inspection and metrology as performance and package complexity rise.

Why COHU Still Carries Real RiskThe bullish case is not without limits. Much of Cohu’s AI and HPC pipeline remains in qualification or early engagement, so customer traction has not fully translated into booked, recurring revenue.

The company also operates in a cyclical semiconductor equipment market. Demand can shift quickly with utilization rates, customer inventory cycles and capital spending.

Competition remains another risk. Larger rivals have deeper scale, broader customer reach and significant R&D budgets.

Profitability is also still a work in progress. Cohu reported a GAAP loss in the first quarter of 2026, while operating expenses rose as the company increased spending to support HPC opportunities.

What COHU Signals Say Right NowThe bottom line is that Cohu’s business momentum is improving, but the stock still carries a mixed fundamental profile. AI processor testing, HBM inspection and recurring revenue provide credible growth levers, while execution risk and weak profitability keep the outlook balanced.

COHU currently carries a Zacks Rank #2 (Buy), which points to a favorable short-term earnings-estimate setup. That supports investor interest in the stock over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, the Zacks Style Scores are less clean. COHU has a VGM Score of F, with a Value Score of F, Growth Score of B and Momentum Score of F.

The Growth Score of B highlights better growth characteristics, but the weak Value, Momentum and VGM readings suggest the stock does not yet offer an all-around attractive profile across those style categories. For now, COHU looks like a recovery-and-AI growth story that still needs stronger profitability follow-through.

Key Takeaways Alto Ingredients is expanding Pekin dry mill capacity by about 8%, adding roughly 5 million gallons annually.ALTO expects higher production from Q4 2026, increasing gallons eligible for Section 45Z tax credits.Alto Ingredients is adding logistics infrastructure to improve shipment flexibility and plant efficiency. Alto Ingredients, Inc. (ALTO - Free Report) is investing in additional production capacity at the Pekin dry mill as it looks to improve operational efficiency while capturing greater value from favorable industry incentives. Rather than building new facilities, the company is focusing on debottlenecking its most efficient plant, a move designed to increase output with relatively modest capital investment while strengthening profitability.

The project will be completed during a planned outage in June and is expected to increase the Pekin dry mill's annual production capacity by about 8%, or roughly 5 million gallons. Alto Ingredients expects the higher production rates to begin contributing from the fourth quarter of 2026. The additional volumes are expected to do more than boost production. These are expected to help improve plant utilization and create additional margin opportunities by increasing the number of gallons eligible for Section 45Z clean fuel production tax credits.

The company is also investing in supporting infrastructure at Pekin. In the first quarter, Alto Ingredients started repairs on its original dock and began construction of a second alcohol loadout facility, which is expected to improve logistics and provide added flexibility for shipments.

The expansion highlights Alto Ingredients’ strategy of generating more value from existing assets rather than pursuing large-scale expansion projects. With higher output, better logistics and greater access to clean fuel incentives, Pekin is becoming a central part of the company's operational improvement efforts in 2026.

How ALTO's Strategy Compares With PeersGreen Plains Inc. (GPRE - Free Report) has been prioritizing efficiency and carbon-intensity reduction projects across its ethanol network. In the first quarter of 2026, Green Plains highlighted investments in grain storage, low-energy distillation and other upgrades aimed at improving plant economics and lowering operating costs. Green Plains also expects these projects to increase eligibility for 45Z-related benefits over time.

MGP Ingredients, Inc. (MGPI - Free Report) has also been focused on improving asset utilization and operational efficiency across its production network. In the first quarter of 2026, MGP Ingredients highlighted initiatives to improve reliability, throughput and production efficiency while reducing waste and disposal costs. MGP Ingredients is also undertaking targeted maintenance and capital projects designed to enhance operational performance and generate better returns from existing assets.

ALTO Stock Price Performance, Valuation & EstimatesShares of Alto Ingredients have surged 415.5% over the past year compared with the industry’s growth of 5.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, ALTO trades at a forward price-to-sales ratio of 0.46, lower than the industry’s average of 3.14.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Alto Ingredients’ 2026 and 2027 earnings per share implies a year-over-year rise of 671.4% and 53.7%, respectively.

Image Source: Zacks Investment Research

Alto Ingredients currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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SummaryCoreWeave, Inc. maintains a Strong Buy rating, supported by a $99.4 billion backlog and sold-out 2026 capacity.CRWV trades at a forward sales multiple far below peers Nebius and IREN, despite triple-digit revenue growth and rising pricing power.Backlog quality has improved, with investment-grade customers now comprising over 70% of future commitments and robust pricing momentum across its fleet.Balance sheet risk exists due to high capex and negative free cash flow, but contracted demand and margin expansion potential outweigh near-term CRWV funding concerns. quantic69/iStock via Getty Images

CoreWeave, Inc. (CRWV) just posted its strongest bookings in history. Backlog climbed to $99.4 billion, the company sold out of its 2026 capacity, and it even raised its prices across its fleet. Then the stock sold off with every

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Employees work at the Tesla Gigafactory during a government-organised media trip in Shanghai, China, April 14, 2026. REUTERS/Go Nakamura Purchase Licensing Rights, opens new tab

CompaniesBEIJING, July 2 (Reuters) - Tesla's (TSLA.O), opens new tab China-made electric vehicle sales rose for an eighth month in June, supported by an extended ​recovery in the U.S. automaker's European sales.

Deliveries of Model ‌3 and Model Y vehicles made in its Shanghai plant, which is also an export hub for Europe, grew 24.4% from a year ​earlier to 89,091 units, data from the China Passenger ​Car Association showed on Thursday. The increase followed ⁠a 39.4% gain in May.

Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here.

For the second quarter, Tesla's combined ​China sales and exports from the Shanghai factory were up ​32.8% year-on-year.

Later on Thursday, the EV specialist is expected to report a 5% year-over-year increase in global vehicle deliveries to 402,780 vehicles over the past ​quarter, buoyed by stronger demand in Europe where a ​spike in fuel prices following the U.S.-Israel conflict with Iran has prompted ‌more ⁠consumers to turn to EVs.

The recovery in Europe and resilient demand in China are expected to help offset declining sales in North America.

Even so, the results could leave the door for ​its biggest ​Chinese rival, BYD (002594.SZ), opens new tab, ⁠to retake the title of the world's top EV seller after briefly ceding it to ​Tesla in the first quarter.

BYD, which posted a ​second ⁠consecutive month of sales growth in June, sold 557,090 battery-electric vehicles globally in the second quarter, underlining the strength of its ⁠overseas ​expansion, particularly in Europe, as it ​seeks to diversify beyond China's fiercely competitive domestic market.

Reporting by Qiaoyi Li, Zhang ​Yan and Ju-min Park; editing by Barbara Lewis and Louise Heavens

Our Standards: The Thomson Reuters Trust Principles., opens new tab